New Delhi, Aug 19 (PTI) The Delhi High Court on Tuesday denied bail to former Amtek Group chairperson Arvind Dham in a Rs 2,700-crore bank fraud case, saying that with advanced technology and AI, money laundering and other economic offences pose a significant challenge to investigation agencies and such crimes have serious repercussions for the economy.

Justice Ravinder Dudeja dismissed Dham's regular bail application, saying that premature release could risk undermining efforts to secure accountability.

"With the advancement of technology and Artificial Intelligence, economic offences such as money laundering have emerged as a serious threat to the financial system of the country. These offences pose a significant challenge for investigating agencies, given the complex and intricate nature of the transactions and the involvement of multiple actors," the judge said.

The judge added that a meticulous and thorough investigation was essential to ensure that innocent persons were not wrongfully implicated and that the actual offenders were brought to justice.

"The complexity of the case, the multiplicity of transactions, and the layered corporate structures necessarily entail a protracted trial," the judge said.

The judge said that the principle that economic offences warrant stringent treatment in bail matters was not absolute. However, "in cases involving large-scale diversion of public funds, the gravity of the offences assumes overriding significance." "Given the serious repercussions for the economy and the banking sector, such offences undermine public confidence and harm depositors and creditors.

"Granting bail too liberally in such matters risks sending a counterproductive signal. Granting bail at this juncture would risk compromising both the trial and public confidence in the justice system'¦ Continued custody is thus warranted," he said.

The court noted that the allegations against the applicant pertained to an economic offence of exceptional magnitude, involving complex, deliberate and sustained criminal conduct causing grave loss to public sector banks.

"Such offences erode the fabric of economic governance and public trust and cannot be taken lightly," the judge said.

The court further said that while the applicant may be ailing, adequate medical care can be provided in custody under judicial supervision.

The Supreme Court in April denied interim bail to Dham in the matter.

Earlier, the ED provisionally attached fresh assets worth over Rs 550 crore of Amtek Group firms, an insolvent automotive equipment manufacturing company, under the anti-money-laundering law.

Action was taken against Amtek Auto Limited, ARG Limited, ACIL limited, Metalyst Forging Limited, Castex Technologies Limited and Amtek Group promoter Arvind Dham, apart from some others, the ED said.

Properties worth Rs 5,115.31 crore were attached by the agency in the case in September last.

The ED probe began under the Prevention of Money Laundering Act (PMLA) on the directions of the Supreme Court on February 27, 2024.

Dham was arrested the agency in July last year and chargesheeted in September later that year.

The probe found the above-mentioned companies, along with other group concerns, were taken to insolvency, whose resolution led to a haircut of more than 80 per cent for the banks, causing "substantial" losses to these public sector financial institutions.

The financial statements of group companies were "deceitfully manipulated" to obtain additional fraudulent loans and create bogus assets and investments in the books of accounts, the agency alleged.

The provisionally-attached assets include 145 acres of land in Rajasthan and Punjab, some properties in Delhi-NCR valued in total at Rs 342 crore, apart from fixed deposits and bank balances worth Rs 112.5 crore.

All the Amtek assets are identified as "direct proceeds of crime" and held through several companies beneficially owned by Dham and assets of Amtek companies held by bankers who sanctioned the loans, according to the ED. PTI UK RT

Economic offences and bail: stricter treatment to protect financial system amid complex, technology enabled money laundering challenges. Court refused bail in a large scale bank fraud and money laundering case, stressing that economic offences of exceptional magnitude demand stringent bail scrutiny because technology and AI have increased investigative complexity through layered transactions and corporate structures. The court held that meticulous, protracted investigation is essential to identify actual offenders and protect public confidence, and that continued custody, with judicially supervised medical care if needed, may be warranted while provisional asset attachments and an ongoing anti money laundering probe proceed.